if the mega millions jackpot is 44 million and cash value is 25 million and my state has no tax how nuch u get

Question

what i am trying to say is the federal taxes seem to be taken out already since the pool is 444 million but the 25 million is the cash value afeter taxes already isn't it?

sorry 44 million not 444

Answer 1

No, the difference isn't the taxes. They're saying that your gross winnings if you take it all immediately is $25 million, but the total gross is $44 million if you take payments over probably 20 years. The difference is because they have most of the money for the other 19 years, so get interest on it. So even if you would take the immediate total payment, you'd still owe taxes out of that.

Federal income taxes on a win that big would be around a third, maybe a little more. They might not withhold that much, but if they don't, it would be your responsibility to pay any additional taxes over what they withhold.

Answer 2

The $44 million pot is what you'd actually get if you took the annuity option. Meaning the jackpot is paid out per year for 25 years. The interest is what accumulates to the $44 mill.

If you took the lump sum payment, the $25 million is what is actually available for payment at that time.

With federal taxes, subtract about 25%. So, now you're at about $18.5 million. Depending on the state, you might end up with about $16 million.

Still a nice bucket of change, eh?!

Answer 3

25 % in Federal tax is withheld from prize amounts over $5,000, and 3% percent Illinois. State tax is withheld from prize amounts of $1,000 or more. Actual tax liability may be more or less, depending on your individual filing status.

Answer 4

i think u get all of it but not at once. i think they give out a certain amount of money each month to u but if u want if all at once they cut it a certain percentage